Market Report: September 2016 new car registrations

New car registrations fell -9.3% during the September plate-change to 426,170 units. This marked the sixth consecutive monthly fall and was the first time the all-important September market dropped since 2011, according to the SMMT.

Year to date registrations were down -3.9% from 2,150,495 to 2,066,411 units as the levelling-off gathers pace.

Retail registrations fell -8.8% in September to 223,777 units but outperformed fleet which was down -10.1% to 222,887 units.

Sales to small businesses, running less than 25 cars, fell -5.2% to 23,032. The falls look bad but are set against a backdrop of September 2016 hitting an all-time high for the month when pre-regs pushed the market to just under 470,000 units.

Year to date registrations show retail down -6.1%, fleet down -2.1% and business down -1.7%.

The biggest casualty in the month was diesel which plummeted -21.7% year-on-year to 170,732 units. In the year to date diesel has fallen -13.7%.

It was a bad month across the board with most brands posting falls, suggesting the plethora of carmaker scrappage schemes did little to entice private buyers.

“September is always a barometer of the health of the new car market so this decline will cause considerable concern,” said SMMT chief executive Mike Hawes.

“Business and political uncertainty is reducing buyer confidence, with consumers and businesses more likely to delay big ticket purchases. The confusion surrounding air quality plans has not helped.”

Elsewhere industry reaction pointed to a stabilisation of the new car market.

“While the new market remains at a historically high level with over two million vehicles registered this year, we believe it is on track to be more reflective of its true size rather than a forced market,” said James Dower, senior editor of Black Book at cap hpi.

“As the market returns to a more natural size we will see fewer new and used vehicles, which will drive more stability in the used market. We also expect to see more profitability for dealers due to lower volume expectations through 2018.”

Richard Jones, managing director of Black Horse, said: “The figures reflect the general slowdown across the market. The ongoing action from manufacturers around scrappage schemes and the broader discussion around fuel technology might well have impacted on the numbers given that we saw a continued fall in sales of diesel cars.”

Sue Robinson, director of the NFDA said work needed doing on boosting car buyer confidence.

“Consumers walking into the showroom need more clarity on issues such as diesel and air quality. We are working closely with car retailers to assist them in educating their customers.